Federal Foreclosure Programs

1
Federal Foreclosure Programs

• Foreclosure Forum
• Asheville, NC

2
Housing and Economic Recovery Act

• Neighborhood Stabilization Program
• Funds to purchase homes in foreclosure
• NCHFA NC Community Development Initiative
• National Housing Trust Fund
• Capital Magnet Fund
• Solutions to the LIHTC program

3
Homeowner Affordability and Stability Plan

• Three main goals
• Refinancing for Up to 4 to 5 Million Responsible
  Homeowners to Make Their Mortgages More
  Affordable
• A 75 Billion Homeowner Stability Initiative to
  Reach Up to 3 to 4 Million At-Risk Homeowners
• Supporting Low Mortgage Rates By Strengthening
  Confidence in Fannie Mae and Freddie Mac

4
Refinance Eligibility

• Designed for homeowners unable to refinance to
  lower rates because of income drop or house price
  decline
• Owner Occupant 1-4 units with securitized loan by
  Fannie or Freddie
• Current on Mortgage Payment!!!
• Amount owed is same or slightly less than current
  value
• Refinancing Improves Stability of Loan

5
Modifications Eligibility

• Owner-occupied 1-4 units
• Unpaid principal of less than 729,750 for one
  unit
• Have a loan originated on or before 1/1/09
• Have a mortgage payment that is more than 31 of
  your gross income
• Can also be unaffordable because of significant
  change in income or expenses.

6
Modifications Continued

• Do not have to be behind in mortgage to qualify,
  only first mortgage is eligible
• Servicer participation is voluntary govt is
  offering incentives
• Participating servicers are found at
  www.makinghomeaffordable.gov
• If eligible loan will be modified for five years
  then capped, can extend to 40 years.

7
Tenant Protections in Foreclosure

• Require that the immediate successor in interest
  at foreclosure
• provide bona fide tenants with 90 days notice
  prior to eviction and
• allow bona fide tenants with leases to occupy the
  property until the end of the lease term except
  the lease can be terminated on 90 days notice if
  the unit is sold to a purchaser who will occupy
  the property.

8
Final Thoughts

• Foreclosures and economic decline will make
  affordable housing close to employment more
  important than ever.
• This takes investment and planning
• Land values will continue to make housing for
  vulnerable populations and service workforce very
  difficult.
• Homeownership must be accompanied by realistic
  and quality housing counseling.

9
Contact Info

• Chris Estes
• NC Housing Coalition
• www.nchousing.org
• 919-881-0707
• cestes_at_nchousing.org